Agricultural Value Analysis of Qoka Irrigation Based Onion and Tomato Production With Respect to Forward Integration

Abstract

The main objective of this research is to investigate the agricultural value analysis of Qoka irrigation based onion and tomato production with respect to forward integration identify the major problems being encountered by the main actors and recommend policy matters. The research has focused on small scale producers and the chain forward in distribution of both products to central market, Addis Ababa. The research used both qualitative and quantitative data collected through structured questionnaires and interviews of Key informants and focus group discussions. In this research quantitative data such as production and productivity of the crops, the cost production, marketing costs and marketing margin and value addition of the main actors were collected and analysed. The opinions of primary actors, key informants (KI) and focus group discussants (FGD) on the major problems being encountered by the major actors (the primary producers, the brokers, the wholesalers, the retailers and the consumers) were collected and analysed using likert scale, The study result show that the producers, brokers, wholesalers and retailers could secure an average net market margin of birr (44), 0, 640 and 239 per quintal, respectively. Such distribution of the market margin in the case of Tomato business was 104.5.0.155 and 248.62 birr per quintal in the same order as stated in the case of Onion business. The total marketing margin for Onion and Tomato were ETB 834.74 and 508, respectively. In case of Onion business the wholesalers appropriated 76% of the total market margin created in the value chain while the retailers of Tomato took the biggest share (48.9%) of the margin created. Lack of warehouse, access to credit, improved seeds, and the expensiveness of agrochemicals were among the most critical impediments for better performance of the value chain. Each producer in the study area is applying bi-cropping strategy that is producing at least two crops, in order to compensate if in case there is a loss in one of the crops at any given point in time the value chain. Despite the fact that the primary producers under this research are supplying significant proportion of vegetable products to the central market they are totally excluded from any kind of investment/development packages of both the regional and federal governments. Therefore, any of the forthcoming policy and the existing ones must be formulated and restructured to provide sufficient considerations to these producers as they are the transitional phase towards the proliferation of domestic investors